Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698930481691.pdf (New Zealand)
2013/230 Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 Jerry Mateparae, Governor-General Order in Council At Wellington this 27th day of May 2013 Present: His Excellency the Governor-General in Council Pursuant to sections 5, 153, and 154 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, His Excellency the Governor-General makes the following regulations, acting— (a) on the advice and with the consent of the Executive Council; and in relation to regulations made under section 154 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009, on the recommendation of the Minister (as defined by section 5 of that Act) made in accordance with section 154(2) and (3) of that Act.
(b) Contents 1 2 Title Commencement Page 2 2 1 r 1 Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 2013/230 Principal regulations Regulation 5 amended (Prescribed threshold) New regulation 5A and cross-heading inserted 5A Applicable threshold value for wire transfer Applicable threshold value for wire transfer is $1, 000 Inclusion: wire transfers of more than $1,000 New regulation 13A inserted (Inclusion: wire transfers of more than $1,000) 13A Regulation 15 amended (Inclusion: transactions involving certain stored value instruments) Regulation 17 amended (Inclusion: trust and company service providers) New regulation 18A inserted (Exclusion: non-finance businesses that transfer money to facilitate purchase of goods or services) 18A Exclusion: non-finance businesses that transfer money to facilitate purchase of goods or services Exclusion: lawyers, etc Regulation 20 replaced (Exclusion: lawyers, etc) 20 New regulation 21A inserted (Exclusion: licensed or registered auctioneers and providers of Internet auctions) Exclusion: licensed or registered auctioneers and 21A providers of Internet auctions 3 3 3 3 3 3 3 4 5 5 5 5 5 6 6 12 Regulations 11 to 24 revoked Regulations Title These regulations are the Anti-Money Laundering and Coun- tering Financing of Terrorism (Definitions) Amendment Regu- lations 2013.
Commencement These regulations, other than regulation 12, come into force on 30 June 2013.

Regulation 12 comes into force on 28 July 2016.

1 2 (1) (2) 2 2013/230 Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 r 7 3 4 5 Principal regulations These regulations amend the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011 (the principal regulations).
Regulation 5 amended (Prescribed threshold) In regulation 5, after “prescribed threshold is”, insert “more than”.
New regulation 5A and cross-heading inserted After regulation 5, insert: “Applicable threshold value for wire transfer “5A Applicable threshold value for wire transfer is $1, 000 For the purposes of section 27(1) of the Act, the applicable threshold value of a wire transfer is $1,000.” 6 New regulation 13A inserted (Inclusion: wire transfers of more than $1,000) After regulation 13, insert: “13A Inclusion: wire transfers of more than $1,000 “(1) This regulation applies to every transaction that— “(a) “(b) occurs outside of a business relationship; and involves the receipt of a wire transfer by a beneficiary institution for an amount of more than $1,000 (whether the transaction is carried out in a single operation or several operations that appear to be linked).
“(2) Every transaction to which this regulation applies is declared to be an occasional transaction for the purposes of the Act.” 7 Regulation 15 amended (Inclusion: transactions involving certain stored value instruments) Replace regulation 15(1) with: (1) “(1) This regulation applies to every transaction that occurs outside of a business relationship and that involves the issuing or pro- vision of a stored value instrument that— “(a) has a maximum possible value at any one time of,— “(i) if the stored value instrument is redeemable for cash, $1,000 or more: 3 r 8 Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 2013/230 “(ii) if the stored value instrument is not redeemable for cash, $5,000 or more; or “(c) “(b) is capable of being reloaded with $10,000 or more in any consecutive 12-month period; or is capable of being reloaded directly through transfer from an account held at a financial institution that is— unregulated for AML/CFT purposes; or “(i) located in a country with insufficient money laun- “(ii) dering and countering financing of terrorism sys- tems and measures.” (2) Replace regulation 15(4) with— “(4) For the purposes of this regulation,— “debit card means an instrument that can be used to withdraw cash or make payments by debiting an account held at a finan- cial institution “gift facility has the same meaning as in regulation 9(2) of the Financial Service Providers (Exemptions) Regulations 2010 “stored value instrument— “(a) means a portable device, including a gift facility, that is capable of storing monetary value in a form that is not physical currency, regardless of whether the device is reloadable or able to be redeemed for cash; and includes— “(i) a portable device whose value, or associated value, is transferable to a third party or is able to be remitted; and any account or other arrangement associated with the value stored on the device; but does not include a credit card or a debit card.” “(ii) “(b) “(c) Regulation 17 amended
 (Inclusion: trust and company service providers) Replace regulation 17(2)(c) with: “(c) providing a registered office, a business address, a cor- respondence address, or an administrative address for a company, a partnership, or any other legal person or ar- rangement.” 8 4 2013/230 Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 r 11 9 New regulation 18A inserted (Exclusion: non-finance businesses that transfer money to facilitate purchase of goods or services) After regulation 18, insert: “18A Exclusion: non-finance businesses that transfer money to facilitate purchase of goods or services “(1) A person is not a reporting entity, for the purposes of the Act, by reason only that, in the ordinary course of a non-finance business, the person transfers money on behalf of a customer to facilitate the purchase of goods or services by the customer.
In this regulation, non-finance business means a person whose only or principal business is the provision of goods or services that are not relevant services.” “(2) 10 Regulation 20 replaced (Exclusion: lawyers, etc) Replace regulation 20 with: “20 Exclusion: lawyers, etc “(1) It is declared that a person is not a reporting entity, for the purposes of the Act, by reason only that the person carries out a relevant service in the ordinary course of the person’s business as one of the following: “(a) a lawyer, an incorporated law firm, a conveyancing practitioner, an incorporated conveyancing firm, an accountant, or a real estate agent: an executor, an administrator, or a trustee in respect of services provided in the administration of an estate or, in the case of a trustee, in respect of services provided to beneficiaries of a family trust.
“(b) “(2) If subclause (1) applies to a person (A), it applies equally to any director, employee, agent, or other person while acting in the course of, and for the purposes of, A’s business to the same extent as it applies to A.” Compare: 2008 No 97 s 7(2)(a), (h), (3) 11 New regulation 21A inserted (Exclusion: licensed or registered auctioneers and providers of Internet auctions) After regulation 21, insert: 5 r 12 Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 2013/230 “21A Exclusion: licensed or registered auctioneers and “(1) “(2) “(3) providers of Internet auctions It is declared that an auctioneer who is licensed or registered under an enactment is not a reporting entity, for the purposes of the Act, by reason only that the auctioneer carries out a rele- vant service in the ordinary course of the auctioneer’s business of conducting auctions.
It is declared that a person is not a reporting entity, for the purposes of the Act, by reason only that the person provides relevant services in the ordinary course of the person’s busi- ness as a provider of Internet auctions.
In this regulation,— “auction means a process in which property of any kind (in- cluding goods, services, and interests in land) is offered for sale by an auctioneer on behalf of a vendor, and— “(a) bids for the property are placed with the auctioneer in real time, whether in person, by telephone, via the Inter- net, or by any other means; and the property is sold when the auctioneer so indicates “(b) “Internet auction means a process, not being an auction as defined by this subclause, that is operated online to enable members of the public to conclude contracts for the sale and purchase of goods or the provision and acquisition of non-fi- nancial services “non-financial service means a service that is not, or does not include, a relevant service.” 12 Regulations 11 to 24 revoked Revoke regulations 11 to 24.
Michael Webster, for Clerk of the Executive Council.

6 2013/230 Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 Explanatory note Explanatory note This note is not part of the regulations, but is intended to indicate their general effect.

These regulations amend the Anti-Money Laundering and Counter- ing Financing of Terrorism (Definitions) Regulations 2011 (the prin- cipal regulations).
The regulations come into force on 30 June 2013, except for regulation 12, which comes into force on 28 July 2016.

Regulation 4 amends regulation 5 of the principal regulations, which prescribes the threshold for the purposes of the definition of benefi- cial owner in the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act).

Currently, a person is taken to be a beneficial owner of an entity if the person owns 25% or more in the entity.
The amendment changes the threshold to proportions of more than 25%, thus excluding owners whose stake in an entity is exactly 25%.

Regulation 5 inserts new regulation 5A in the principal regulations to set a threshold of $1,000 for wire transfers.

This regulation su- persedes a regulation that was previously in the Anti-Money Laun- dering and Countering Financing of Terrorism (Exemptions) Regu- lations 2011.
Regulation 6 inserts new regulation 13A in the principal regulations to include the receipt, outside of a business relationship, by a benefi- ciary institution of an amount of more than $1,000 by way of a wire transfer as an occasional transaction.

The effect of the inclusion is to require the beneficiary institution to undertake due diligence in re- spect of the beneficiary.
Regulation 7 amends regulation 15 of the principal regulations to ex- tend the kinds of stored value instruments (that is, instruments issued to enable purchases of certain goods and services) that, when issued outside of a business relationship, become subject to the require- ments of the Act.
The additional instruments that become subject to the Act are ones that are capable of being reloaded with $10,000 or more in any consecutive 12-month period or that are capable of being reloaded directly through a transfer from an account held at a financial institution that is unregulated for anti-money laundering and countering financing of terrorism purposes, or that is located in a country with insufficient anti-money laundering and counter- ing financing of terrorism systems and measures.
The amendment 7 Explanatory note Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 2013/230 also aligns regulation 15 of the principal regulations with technical changes made by regulation 8 of the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Amendment Regu- lations 2013.
Regulation 8 amends regulation 17 of the principal regulations, which declares persons to be reporting entities for the purposes of the Act if they provide services carried on solely or principally to form legal entities or arrangements or provide related services, including providing a registered office, business address, or accom- modation.
The amendment deletes the reference to accommodation to avoid capturing as reporting entities persons who merely provide accommodation in relation to a legal person or arrangement.

Regulation 9 inserts new regulation 18A in the principal regulations to declare that non-finance businesses are not reporting entities merely because they transfer money on behalf of customers to facilitate the purchase of goods or services by those customers.
Regulation 10 replaces regulation 20 of the principal regulations, which declares that certain professions, such as lawyers and account- ants, are not reporting entities, for the purposes of the Act, when they act in the course of their businesses.

The effect of the new regula- tion 20 is similarly to exempt executors, administrators, and trustees when they provide services in the administration of estates.

A trustee who provides services to the beneficiaries of a family trust is also ex- empted.
The new regulation also exempts an employee or any other agent who acts in the ordinary course of the business of an exempted professional.

Regulation 11 inserts new regulation 21A in the principal regulations to declare that auctioneers and Internet auction providers are not re- porting entities for the purposes of the Act merely because they pro- vide relevant services in the course of carrying out their respective businesses.
Regulation 12 revokes regulations 11 to 24 of the principal regula- tions on 28 July 2016, that is, immediately after the date on which those provisions will expire in accordance with regulation 3 of the principal regulations.

8 2013/230 Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 30 May 2013.


These regulations are administered by the Ministry of Justice.

12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2013 9